Market wraps 17th November 2021
Morning Bell - Sophia Mavridis
The ASX200 fell 0.7% yesterday following a sell-off in Mining stocks and weaker commodity prices, which saw Materials as the worst performer. BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) both fell more than 2%. Energy stocks also fell, including Santos (ASX:STO), Oil Search (ASX:OSH) and Woodside Petroleum (ASX:WPL). Most sectors were lower, except Information Technology. Chalice Mining (ASX:CHN) was back on top yesterday, rising 3.7%. Virgin Money (ASX:VUK) also advanced, following positive gains in its UK listed share on Monday night. Biotech company Mesoblast (ASX:MSB) lost ground, falling over 8%.
In New York the markets had a positive run. The S&P 500 up 0.4%, the Dow up 0.2% and the Nasdaq up 0.8%. US stocks gained after October retail sales data came in better than expected. Sales jumped 1.7%, a good sign for the upcoming holiday season.
The SPI futures are suggesting the ASX200 will rise 0.4% at the open this morning.
What to watch today:
- In economic data, the wage price index will be released today at 10:30am AEDT. That shows the annual change in hourly rates of pay. Consensus expects a rise to 0.5% from 0.4% QoQ and a rise to 2.2% from 1.7% YoY.
- This morning agricultural chemical company Nufarm (ASX:NUF) reported its full-year 2021 results, with strong operational performance and 51% growth in underlaying earnings and cash generation. And the company declared an unfranked dividend of 4 cents per share.
- And AGMs will be held today for City Chic Collective (ASX:CCX) and Seven Holdings (ASX:SVW).
- The most traded stocks by Bell Direct clients yesterday included BHP Group (ASX:BHP) and Mineral Resources (ASX:MIN) amid broad selling in materials, and South32 (ASX:S32) as its price declined amid increased pressure to take into consideration climate change risks.
- The oil price is trading lower at US$80.60 as demand concerns were offset by prospects of tight inventories. Gold is also trading lower, easing earlier session gains. And the seaborne iron ore is trading down 0.4% at US$92 a tonne.
- Bell Potter maintain their BUY rating on Technology One (ASX:TNE) and have increased their price target from $13.50 to $15. TNE closed at $13.09 yesterday, implying 14.6% share price growth in a year.
- Goldman Sachs retain their BUY rating on Hipages Group (ASX:HPG), and have increased their price target from $4.90 to $4.95.